BBJ: The hotel building has a significant anniversary this year. What is it, and how do you plan to celebrate it?
Tamás Fazekas: Indeed, the New York Palace was built in 1894 by the New York Life Insurance company, meaning this year we celebrate the 130th anniversary. After the New York Life Insurance company moved out, the building hosted many local companies like the Nova Transport and Industry Company and a publishing firm. Although a five-star luxury hotel opened here only in 2006, the New York Café has existed and operated since the beginning. Therefore, we plan to organize a grandiose event at the end of the year to celebrate this wonderful anniversary. We have several ideas in mind, although we don’t want to reveal them at the moment
BBJ: How was the first half year of 2024 for you? Were you able to meet your targets, and how does the second half look?
TF: The first half of 2024 looks very good for us. Although occupancy will not yet reach the level of pre-COVID, the increased average rate can compensate for that. We still see a slow recovery from some markets, such as the Far East. However, some other markets show unexpected growth. In the second half, it is still difficult to predict, especially as the UEFA European Championships have already started, and the Paris Summer Olympics will also take place between July and August. On the other hand, we believe that the Hungarian Presidency of the Council of the European Union in the second half of the year will generate additional conference and corporate business. So, all-in-all, we look very positively towards the end of the year.
BBJ: How would you describe the general hospitality market in Hungary? What are the biggest challenges, and where are the greatest opportunities?
TF: It is good to see that Budapest is really one of the European destinations that attracts returning tourists as well as new “explorers.” The former are from Europe and America, and the latter from the Middle East, India, and even South America. Last year, the palette of the local five-star market increased with some great hotels, which definitely represents a challenge. However, having more quality and luxury hotel supply in Budapest will also, I believe, contribute to enhancing quality tourism in general. For instance, some new retail brands will come and open a base in Budapest, new types of gastronomy will arrive, and so on.
BBJ: How challenging is it to find enough staff of the right quality? Are you involved in programs to help develop the next generation?
TF: After COVID-19, we faced the same situation as many others in business in terms of finding reliable staff. Luckily, we managed to find real talent – in fact, in all areas – by the second half of 2023. That means we have a stable team and can maintain the very high guest satisfaction of which we are very proud. The main goal at the moment is to retain these excellent team members and offer them future opportunities. We are also in contact with some colleges and universities and participate in their programs, working with trainees, doing site inspections, and giving lectures at various institutions.
BBJ: What are your targets for the next few years for the hotel?
TF: First of all, we would like to continue the same progress and success that we have experienced in the last two years. The hotel underwent a complete renovation and rebranding in 2022, but there is always room for improvement. In the service we give, the combination of the Anantara luxury brand standards along with “Leading Hotels of the World” expectations is a kind of baseline; however, our goal is to go beyond. In the next couple of years, we also plan to improve the quality of our high-end suites and modernize our meeting and conference facilities.
BBJ: What could the government do to support the Hungarian hospitality industry better?
TF: There are several ongoing positive initiatives at the moment from the government side; however, destination marketing is critical in this aspect, like tourism campaigns and launching national and international marketing campaigns to promote tourism and travel. It is also essential to support local events and attractions that encourage domestic and international tourism and engagement.
This article was first published in the Budapest Business Journal print issue of June 28, 2024.
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